Here’s what the ABS says is happening to house prices

We’re used to monthly, weekly and even daily house price reports. Property Invest Money

That’s very different from when I first started investing and housing stats only came out once a year.

Interestingly the Australian Bureau of Statistics only released its Residential House Price Index Quarterly believing this gives an more accurate assessment and smoothes out the ups and downs.

They recently (11th December) released their latest showing their price index for residential properties for the weighted average of the eight capital cities fell 1.5% in the September quarter 2018.

The index fell 1.9% through the year to the September quarter 2018.

Abs House Prices

 

State by State

  • The total value of residential dwellings in Australia was $6,847,057.2m at the end of the September quarter 2018, falling $70,148.6m over the quarter. Western Australia And Northern Territory
  • The mean price of residential dwellings fell $9,700 to $675,000 and the number of residential dwellings rose by 40,900 to 10,143,700 in the September quarter 2018.
  • The capital city residential property price indexes fell in Melbourne (-2.6%), Sydney (-1.9%), Perth (-0.6%) and Darwin (-0.9%), and rose in Brisbane (+0.6%), Adelaide (+0.6%), Hobart (+1.3%) and Canberra (+0.5%).
  • Annually, residential property prices fell in Sydney (-4.4%), Darwin (-4.4%), Melbourne (-1.5%), Perth (-0.5%) and rose in Hobart (+13.0%), Canberra (+3.7%), Adelaide (+2.0%) and Brisbane (+1.7%).

State By State House Prices

Here’s what’s happened in the long term

Pete Wargent took a look at what’s happened to property prices since their inception by the  ABS in 2003.
Looking at the chart from 2003 to 2018 by capital city Pete found the most striking observation is just how similar price growth has been, despite the divergence of the resources capitals through the mining boom years.

He commented:

Looking at the long run figures the case for a raging property bubble isn’t an especially strong one, with the weighted average capital city price index slightly more than doubling over the 15 years to September 2018.

A glance at a compound interest rate table tells you equates to a compound annual growth rate of ~5 per cent, while prices would already be some way lower today as I write this in December.

 This was a 15-year period through which the Aussie population increased by 5¼ million – overwhelmingly into a handful of capital cites – and the standard variable mortgage rate declined by ~125 basis points.

Here’s a snapshot of some of the fundamentals affecting our real estate markets

Snapshot

Source of graphics: Property Council of Australia

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Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Here’s what the ABS says is happening to house prices' have 2 comments

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    December 14, 2018 MICHAEL CORRELL

    Actually looking at house prices in ounces of gold shows there is no price increase.
    Housing is just keeping pace with inflation.

    Reply


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